A Series of Executive Departures At Kering← Back
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François-Henri Pinault / Image Source Wearetrends.com
The fourth quarter of 2014 has seen French billionaire François Pinault’s businesses experience a number of organisational shifts: since September, at least nine senior executives have left business owned by Pinault, most recently when Christie’s international auction house chief stepped down. This latter business constitutes one of Pinault’s main strongholds, as indeed it has since 1998 when Pinault acquired Christie’s for $1.2 billion. Frida Giannini and Patrizio di Marco both announced that they were stepping down from their positions at luxury leather goods company Gucci earlier this month. The house’s newly appointed CEO, Marco Bizzari, has been a part of the Kering company since 2005. This strategical juggling of CEOs comes as part of Pinault’s attempt to gain more control over the financial organisation of the family’s empire: his son, François-Henri Pinault, who has been at the head of Kering since 2006, is key in the reorganisation of the luxury conglomerate's companies
François-Henri Pinault / Image Source: BFMTVTo add to this, Kering announced the possibility of organising a sale of German sportswear brand Puma. With five years of attempts at orchestrating a strategical overhaul, Puma is still suffering as profits fail to increase; while sales may be on the rise, Puma’s profits for 2014 are predicted to be half that of what they were ten years ago. The company’s chief commercial officer, Stefano Caroti, stepped down earlier this month, but it is still unclear as to whether the sale of the company is to go ahead.
Since September, other companies of the Kerin conglomerate have seen their CEOs replaced, notably those of Brioni, Bottega Veneta and Christopher Kane. The company is also looking for a CEO to replace Sergio Rossi’s current chief executive, Christophe Mélard. Marred by a slowing demand for luxury goods, Pinault is attempting to revive business models across the company, notably since Kering fell 0.7 % on Wednesday, giving the company a market value of about $23.8 billion.